Air India has started the process of providing final compensation to the families of those who died in the AI 171 plane crash, with those willing to accept the amounts having to ensure that there are no future claims against the airline, original equipment manufacturers and government agencies related to the fatal accident.
Tata Group-owned Air India is in the process of paying interim compensation ₹25 million. In the event that the final calculated compensation amount is less than ₹25 lakh which was paid as interim compensation, then these families will be offered more ₹10 crore, sources said on Thursday.
Read also | AI-171 crash: AAIB calls ‘human intervention’ claims ‘speculative’
In addition to the ex gratia amount ₹1 million to the families of those who died in the crash is being donated by the AI-171 Memorial and Welfare Trust, set up by the Tata Group.
In one of India’s worst aviation accidents, a total of 260 people, including 241 passengers, died after an Air India Boeing 787-8 operating flight AI171 to London Gatwick crashed on June 12, 2025, shortly after takeoff from Ahmedabad.
Air India said on Thursday that it is ensuring that the final compensation offered to the families “is fair and in accordance with the law”.
“After the first interim payments from ₹25 lakh to the families of the deceased and with an ex-gratia payment process ₹1 million from the AI-171 Memorial and Welfare Trust is ongoing, Air India has initiated the process of final compensation,” the airline said in a statement.
Read also | Why is Bangladesh holding a referendum with a general election today?
The airline emphasized that information regarding the final compensation was shared in a transparent manner with the affected families, while stating that in accordance with recognized industry standards, compensation payments are made on a full and final basis to allow for a conclusion.
The amount of final compensation for each family will vary depending on various factors.
Once the final amount of compensation is decided, the affected family will also be asked to sign a release and indemnity form, accepting that no future claims will be made against the airline and other entities, the sources added.
The amounts offered to each family have been calculated according to the applicable legal framework and vary according to individual circumstances, the statement said.
“Families who agree to receive final compensation are asked to confirm that they have no future claims against Air India or anyone else, including OEMs, airports and government agencies.
Read also | NTSB criticizes media reports on AI-171 crash investigation
“This particular aspect is important to ensure that the process is truly final and to prevent Air India from accepting any direct or indirect claims in the future,” Air India said.
Details of the number of families who would be offered final compensation were not immediately available.
Meanwhile, some families of the crash victims have already started legal forums against the airline in connection with the accident.
The accident is being investigated by the Air Accidents Investigation Branch (AAIB).
The Supreme Court on Wednesday asked the Center to submit a brief report on the “procedural protocol” followed so far after it was informed that the AAIB air crash investigation was over.
In its preliminary crash report, published on July 12 last year, the AAIB said the fuel supply to both of the plane’s engines was cut within one second, causing chaos in the cockpit shortly after take-off.
“In the cockpit voice recording, one of the pilots can be heard asking the other why he cut himself off. The other pilot replied that he didn’t,” it said.